Vehicle Insurance Fraud in Russia Affects Both Insurance Companies and Their Customers

Today car owners in Russia are facing an unusual and ridiculous problem, massively. It often occurs that owners cannot obtain an insurance coverage for their cars because of the shortage of blank contract forms, as insurance companies’ managers are telling them. Such cases were completely unknown just three years ago. Russian lawyers community is investigating this problematic situation which affects the growth of Russian vehicle insurance segment.

Such shortages of blank forms are usually occurring in case one is trying to get a minimum compulsory third-party liability insurance (or OSAGO) contract. So what could cause the so-called ‘shortage’ of blank forms for this type of insurance contract? It appears that it is not the fault of insurance companies’ printers; the reason is the greed of insurance companies which have developed a peculiar ‘marketing scheme’. They are taking advantage of the problems of car owners who are obliged to obtain this insurance according to the law.

So, the shortage of blank forms of OSAGO insurance contracts is being created in purpose. Insurance companies are taking this step in order to boost sales of other their products and services. Particularly, when a customer comes to an insurance company wishing to get an OSAGO contract, he or she is then proposed to sign a life, health or property insurance contract as well. And in case the customer refuses from this additional service, company’s managers say that there are no blank forms for OSAGO contracts. The customer cannot verify this statement of course and has either to agree getting this extra insurance service or just leave.

Basically, in such a situation car owners can complain to the Federal Anti-Monopoly Service of Russia, the Central Bank of Russia or to the Russian Association of Motor Insurers. But practice shows that such complaints do not help much: the only result you can get is a formal report from a controller about an inspection that was made in the company and about the lack of law breaches in this company’s actions. Consequently people are turning to insurance lawyers in Russia more and more often.

Still, there is an option. In fact, the service of vehicle insurance (including OSAGO contracts) is a public agreement according to the Article #426 of the Civil Code of Russian Federation and therefore an insurance company does not have a right to refuse this service to a customer. It does not have a right to force a person to acquire extra services prior to getting an OSAGO contract as well.

In case you have faced such an illegal refusal from corporate insurance manager, you need to write down a formal request to sign an OSAGO contract on paper. You should attach copies of all necessary documents to it, provide your phone number and register it in the insurance company’s branch office (making sure it is sealed). Most probably, in such a case tomorrow they will call you and propose to come again to their office to sign the insurance contract without persuading you to accept any extra conditions.

Now let us investigate the situation with Russian insurance companies refusing to sign third party liability (usually shortened as KASKO) contracts.

Russian insurance companies are having certain problems in this sphere themselves. Central offices are cancelling KASKO services in regional branch offices because of drastic growth of customer fraud which economic security services of branch offices are failing to mitigate.

The reason is that the number of insurance fraud ‘business’ schemes which include acquiring an insurance contract for an expensive car and then doing purposeful damage to it (such as cutting the upholstery, making scratches or fissures on the glass) has grown several times during the last two years. Thus, a car owner can receive the compensation from the insurer which is calculated based upon official car dealers’ prices for repair parts. At the same time, the damaged car would be actually repaired at a usual low-cost repair shop.

Flaws in Russian insurance legislation result in such fraud schemes being very profitable for those who choose this kind of ‘business’. According to information received by Russian lawyers during their professional activities, such schemes are now increasingly used by people who were not involved in fraud schemes earlier.

Economic security departments of insurance companies cannot effectively counter such fraud attempts because they do not have any legal means to perform deep investigations. All they can do is to recommend refusing such claims. But sometimes it makes the situation even worse for an insurer when a car owner whose claim was refused wins this case in a court and receives a sum even bigger than was claimed initially.

The emerging wave of such fabricated insurance claims in Russia has urged many insurance companies to stop providing the service of KASKO insurance and even to quit the Russian insurance market at all. The major part of Russian-based insurance companies used to have the vehicle insurance services as their primary source of income and did not completely realize how many risks are there in this niche; so now these businesses are having a hard time.

So here is an advice for car owners willing to get a vehicle insurance contract in Russia from Russian insurance lawyers. It is better to be very careful when choosing an insurance provider: in case of this company’s bankruptcy you would not be able to claim your payment via the Russian Association of Motor Insurers as this organization can only help to compensate losses by OSAGO contracts. Therefore, you would have register as a creditor in the formal bankruptcy procedure, and the more creditors there would be, the smaller chances of getting some compensation you would have.

Auto Insurance Company – Free Online Car Insurance Company

Today it is very easy to find an auto insurance company free online car insurance quote. In fact, just about every company today offers these quotes online, in order to help you to find out whether not their the right company for you. So what is the best company for you? If it was this easy to determine this, everybody would go the same company.

The truth is, the best car insurance company will vary from person to person, depending on their personal situation. For instance, some companies might offer discounts for good driving records, even good grades, etc. It all depends on you and your situation. One company might be cheaper for your neighbor and may actually be more expensive for you.

So what are some for things to look for an auto insurance company? First of all, this is an obvious one, but it still is one of the central points: the price. The price of a policy will go a long ways to determining which is the right company for you is.

Of course, price certainly isn’t the only factor. Customer service is extremely important as well.

Quite simply, the insurance company industry, for better or worse, has developed the reputation of poor customer service. Many people report nightmare experience of having to wait hours before they get to talk with a representative.

Therefore, always make sure that the customer service is good before going with a particular company. Quite simply, some companies don’t have nearly the amount of current experience the other companies do. Therefore, it is imperative to look at the experience factor when deciding the right insurance company for you.

So how do you find out this information? Again, as with just about any information you want to find out in today’s world, the Internet has an abundance of info; by simply doing a quick Google search you will find literally millions of results to help you find out the right auto insurance company for you. Hopefully is important information help you quickly and easily find the right car insurance company for you with your individual situation.

Auto Insurance Company Comparison – Discover The Only Criteria You Should Ever Use

Making an auto insurance company comparison relies heavily on having a sound judgment of what makes a good company. This article will reveal a simple but effective criteria for selecting a good company and hopefully getting the best deal on car insurance ever.

Start With Cost Savings
When seeking auto insurance, cost will surely be in the forefront of your mind. It’s important that when you make a comparison among insurance companies, cost is central to the criteria. It’s also important to bear in mind too that cheapest does not translate into best, so any cost comparison must be tied to the benefits associated with such costs.

The Company’s Payout Record
This is another important variable that should form any criteria for comparing companies. The main reason for having insurance is to ensure protection when and if something does go wrong.

It stands to reason therefore that if a company has poor track record of honoring claims then this basic reason for having insurance is defeated. You can always find out about a company’s past record by searching online for any negative consumer reports.

Built-in Deductible Amount
The deductible represents the amount that you’ll have to fund out of pocket towards the cost of repairs should you suffer an accident. This amount will vary across providers and so it’s important for use in comparing a companies overall suitability towards your needs. It ties in with cost, but should be looked at separately because it’s basis is quite often arbitrary. One company may have a deductible of 5%, while another may have stipulate 10%.

So, when you next go to make an auto insurance company comparison, use the criteria above. Not only will you find that your ultimate choice is better in terms of coverage, you’ll also save money on quotes as well.

Insurance Company Complaints – Top 10 Companies of 2012 With Least Number of Complaints

The New York State Department of Insurance (DOI) recently released the 2012 Annual Ranking of Automobile Insurance Complaints. The report is issued to help consumers find the automobile insurer that best meets their needs.

This report analyzed data collected from 2010 and 2011. It ranks companies doing business in the State of New York. However, as New York is a heavily populated state, with both big cities and big urban areas, the report can be considered a good representation of insurance company performance nationwide.

Use this report to see where your present car insurer ranks. You MAY want to switch insurance companies after reading this article.

2012 Auto Complaint Listing (best rank at top, more complaints as you go down)

1. Kemper Ins.
2. Progressive Northwestern Ins.
3. Great Northern Ins.
4. Merchants Preferred Ins.
5. Main Street America Ins.
6. Unitrin Auto and Home Ins.
7. Utica National Insurance of Texas
8. Old Dominion Ins.
9. Encompass Indemnity
10. Unitrin Preferred Ins.
11. Commerce and Industry Ins.
12. Encompass Insurance
13. America Automobile Insurance of Hartford
14. TravCo Ins.
16. Economy Premier Assurance
17. Barkers Standard Ins.
18. Travelers Indemnity
19. 21st Century Ins.
20. Nationwide Affinity Ins.
21. Ameriprise Ins.
22. Charter Oak Fire Ins.
23. Encompass Home and Auto Ins.
24. Electric Insurance
25. Nationwide Mutual Fire Insurance
26. Republic-Franklin Insurance (Utica)
27. Citizens Insurance
28. American Modern Home Insurance
29. Hartford Accident and Indemnity
30. Encompass Property and Casualty
31. 21st Century Premier Insurance
32. Nationwide Property and Casualty
33. Massachusetts Bay Insurance
34. Unitrin Advantage Insurance
35. Central Mutual Insurance
36. Associated Indemnity Corporation
37. Response Worldwide Insurance
38. American Bankers Ins.
39. National General Ins.
40. Vigilant Ins.


NONE of the major national companies whose ads you see on TV made the Top Ten!! The only one to break the Top TWENTY was 21st Century! There is only one other major national company in the TOP 40, and that is Nationwide.

What should that tell you?

If your present auto insurer is not shown on this list, maybe they don’t sell insurance in New York. But it likely means that their number of complaints is worse than the #40 position!

Consider this next statement carefully, my friends.

The only thing that matters about your insurance is what happens when you submit a claim. Claims are about KEEPING PROMISES. When the insurance companies don’t keep their promises, the state Departments of Insurance gets lots of complaints!

The DOI report is issued so you can make an informed decision about which insurance company you choose. Choose wisely!

If you experience an automobile loss of any kind, you’ll need to know how to handle your insurance claim so that you maximize your recovery. Learn how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, check out the website shown below in the Resource Box.